Triangle Petroleum

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Another stock that insiders are buying a huge amount of stock in is Triangle Petroleum ( TPLM), which is engaged in the acquisition, exploration and development of oil and gas resource properties. Insiders are buying this stock into solid strength, since shares are up 16.6% so far in 2013.

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Triangle Petroleum has a market cap of $311 million and an enterprise value $382 million. This stock trades at a cheap valuation, with a forward price-to-earnings of 11.32. Its estimated growth rate for this year is 81.8%, and for next year it's pegged at 875%. This is not a cash-rich company, since the total cash position on its balance sheet is $45.04 million and its total debt is $121.50 million.

A director and beneficial owner just bought 9,300,000 shares, or $55.8 million worth of stock, at $6 per share.

From a technical perspective, TPLM is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last few weeks, with shares moving higher from its low of $6 to its recent high of $7.20 a share. During that uptrend, shares of TPLM have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of TPLM within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in TPLM as long as it's trending above its 50-day at $6.47 and then once it breaks out above some near-term overhead resistance levels at $7.20 to $7.32 a share and then above some past resistance at $7.47 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 509,000 shares. If that breakout triggers soon, then TPLM will set up to re-test or possibly take out its next major overhead resistance levels at $7.91 to $8.26 a share. Any high-volume move above $8.26 will then put $9 to $9.73 into range for shares of TPLM.

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